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The business case for integrating child health information systems Kristin N. Saarlas Alan R. Hinman James Mootrey Karen Torghele EHDI Conference March 26, 2007 Objectives By the end of the session you will be able to:

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the business case for integrating child health information systems

The business case for integrating child health information systems

Kristin N. Saarlas

Alan R. Hinman

James Mootrey

Karen Torghele

EHDI Conference

March 26, 2007


By the end of the session you will be able to:

  • Discuss the rationale/necessity for developing a business case for integrated child health information systems (ICHIS)
  • Identify the elements included in the Business Case Model (BCM)
  • Describe some of the unique characteristics of the BCM
business case schmidt
Business Case - Schmidt
  • “a tool that supports planning and decision-making, including decisions about whether to buy, which vendor to choose, and when to implement. Business cases are generally designed to answer the question: What are the likely financial and other business consequences if we take this or that action (or decision)?....The business case is not a budget, not a management accounting report, and not a financial reporting statement.”
business case leatherman
Business case - Leatherman

“a business case for a health care improvement intervention exists if the entity that invests in the intervention realizes a financial return on its investment in a reasonable time frame, using a reasonable rate of discounting. This may be realized as ‘bankable dollars’ (profit), a reduction in losses for a given program or population, or avoided costs. In addition, a business case may exist if the investing entity believes that a positive indirect effect on organizational function and sustainability will accrue within a reasonable time frame”

why do we need a business case for ichis
Why do we need a business case for ICHIS?
  • States need to justify return on their investment due to limited resources
  • Increasing focus on measuring outcomes
  • Need for sustainable funding
  • A business case provides a model to quantify benefits and costs
business case for ichis must
Business case for ICHIS must
  • Develop estimates of the costs and benefits of integrated CHIS - not the costs and benefits of individual information systems
  • Demonstrate the value of integrated CHIS to all stakeholders
  • Reflect the fact that the type of benefits may differ between stakeholders (family vs. government)
  • Reflect the fact that the benefits may not accrue until some time in the future whereas the costs are borne in the present
challenges to developing a business case
Challenges to developing a business case
  • Added/marginal value of integration vs value of programs and independent systems
  • Lack of data on costs and benefits on individual programs and IS
  • Change in behavior that integration of data brings—e.g., data not available now to physicians, who’s responsible for follow up?
  • ROI not always basis for decision making
process for development 1
Process for development - 1
  • Funding provided by HRSA/MCHB/GSB and RWJF
  • Hired Lewin Group health economist Tim Dall in April 2005
  • Formed workgroup of stakeholders from PH, private physicians, family advocates, health plans
  • Solicited input from expert health economists and program specialists
process for development 2
Process for development - 2
  • Researched literature
  • Beta tested tool with 4 states and developed training materials early 2006
  • Conducted initial training of Connectionsmembers March 2006
  • Formed Users Group in Sept 2006
  • Version 2 expected mid 2007
what is the business case for ichis
What is the business case for ICHIS?
  • The business case is a modeling tool to quantify benefits and costs of integrating various child health systems
  • Answers the questions, “What benefits can I expect to see if I integrate this system(s) with that system(s)?” “Are the benefits greater than the costs?”
  • Provides results useful for various perspectives: society, providers, parents, and public health programs
  • Flexible tool that is adaptable to various state and local models and future growth of ICHIS
integration benefits
Integration Benefits
  • Focus on improved effectiveness and efficiency of services, quality and coordination of care, health outcomes
  • Areas of benefits:
    • Benefits to families
    • Benefits to physicians/providers
    • Public health decisions
    • Data quality
    • Case management
benefits to families
Benefits to Families
  • Parents have access to child health information in consolidated format
  • Reminders/recalls
  • Convenience when moving/changing providers
  • Time saved (scheduling appts, missing records, reduced data entry)
  • Reduced visits/efficiency and coordination of care
  • Improved health outcomes (reduced lifetime care costs, increased earnings of family/child)
benefits to providers
Benefits to Providers
  • Providers have ready, current access to data they didn’t have before
  • Saving staff time (pulling charts vs. electronic access)
  • Improved quality of care—reduction in duplicative services, timeliness of care, decrease in loss to follow up
  • Increased number of visits? Increased revenues?
benefits to public health
Benefits to Public Health
  • Assess factors affecting completeness of care
  • Identify medical home and health care utilization rates
  • Linkage to data sources—hospital discharge, education, social services
  • Long term surveillance—population trends
  • Quality assurance—public health role
  • Changes in policies?
bcm is an excel tm spreadsheet prepopulated with data including
BCM is an ExcelTM Spreadsheet Prepopulated with Data Including
  • Population (by age and state)
  • Incidence, outcomes, and costs of specified conditions - days of illness, disability, death, forgone wages, etc.
  • Programmatic areas whose information systems are being integrated
  • Coverage with different interventions and costs of the interventions
  • Actual or projected improvements resulting from integration of individual information systems
programs included
Programs Included
  • Vital records
  • Immunizations (immunization registries)
  • Newborn Dried Blood Spot screening systems (NDBS)
  • Early Hearing Detection and Intervention program (EHDI)
  • Lead screening and intervention program
  • Early Periodic Screening, Diagnosis and Treatment (EPSDT)
  • Women, Infants and Children (WIC) program
  • Birth Defects
step 1
Step 1

User selects which information systems are currently integrated and which systems will be integrated, as well as indicating who will have access to information (e.g., providers, parents, schools), whether and to whom the system will send reminders, and the anticipated annual realization of benefits from integration. If newborn dried blood spot screening information is to be integrated, the user also selects the conditions screened for in their state.

step 1a optional
Step 1A - optional

User reviews the various data elements pre-loaded into the model and changesthem based on more up-to-date or specific information or change certain values to carry out a sensitivity analysis.

step 2
Step 2

Results of automatic calculation using pre-loaded and/or user-leaded values can be viewed.

step 3
Step 3

Summary tables resulting from calculation

  • Overall summary of net benefits (and costs) by benefits category
  • Other tables
    • Benefits to individual program areas
    • Costs of integration
    • Summary table of integration scenario
    • Value of integration benefits/cost over 5 years
  • Charts showing projected net benefits by program area
business case model user group
Business Case Model User Group

Purpose of Group:

  • Assistance creating state-specific business case for integrated systems
  • Identify problem areas in model and guides to be fixed
  • Provide information on experience using model so Institute can develop case studies for future users

Lucia Dhooge, IA

Jan Jernell, MN

Carmen Lozzio, TN

Anil Mangla, GA

Amber Roche, WA


Alan Hinman

Jim Mootrey

Kris Saarlas

Karen Torghele

Ellen Wild

summary 1
Summary - 1
  • Economic modeling presents new concepts for epidemiologists and program managers – model requires training to use
  • Business case models are based on data but have use assumptions about how factors influence other factors and to what degree – need to validate assumptions
  • The model and the results will become more precise over time – some information is better than no information
summary 2
Summary - 2
  • The business case model is a representation of the integration of CHIS—it is not 100% exact for any state
  • The results provide stakeholders with options for the future and the implications of decisions on costs and benefits
  • Tim Dall and colleagues at the Lewin Group
  • Workgroup and technical advisors, PHII staff
  • HRSA/MCHB (Genetic Services Branch) and RWJF funding
business case model
Business Case Model

“Essentially, all models are wrong, but some are useful.“

George E. P. Box

Professor of Statistics

University of Wisconsin

further information
Further Information
  • BCM v2 to be available mid-2007
  • BCM v2 will include:
    • Updated pre-populated Excel file
    • Users guide
    • Technical guide
    • Case studies
  • Contacts:
    • Alan Hinman –
    • Karen Torghele –